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Answer in brief. What are the circumstances under which correspondence can be made with debentureholders?

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Question

Answer in brief.

What are the circumstances under which correspondence can be made with debenture holders?

Answer in Brief
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Solution

Debenture holders are the creditors of the company. They have the right to know about the decisions taken by the management of the company and other information. The secretary corresponds with the debenture holders under various circumstances. The following are the few circumstances under which the secretary enters into correspondence with the debenture holders:

  1. Informing the applicant about the allotment of debentures.
  2. Informing about payment of interest through:
    i. Interest Warrant
    ii. Electronic Mode
  3. Letter for the conversion of debentures into equity share
  4. Informing the debenture holders about the redemption of their debentures.
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Precautions to Be Taken by the Secretary While Corresponding with Debenture Holders
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Chapter 7: Correspondence with Debentureholders - EXERCISE [Page 115]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 7 Correspondence with Debentureholders
EXERCISE | Q 3. 2. | Page 115
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